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New ARC® Sound-to-Silicon Solution Targets Revitalized Mobile Digital TV Market

ARC Enables OEM and SoC Companies to Exploit Rapid Growth Spurred
By Global Analog TV Switch Off

COMPUTEX COMPUTER EXHIBITION, Taiwan, June 3, 2009 – ARC International (LSE: ARK) today introduced a new Sound-to-Silicon solution that enables OEMs and their system-on-chip (SoC) suppliers to provide consumers with broadcast or Internet TV access throughout the U.S., Europe, and China. With ARC’s new solution, OEMs can quickly add digital TV functionality to portable devices that provides consumers with a significantly enhanced listening and viewing experience at lower development cost, while creating a product that is unique from their competitors. SoC partners benefit from a fully integrated solution comprising award-winning Sonic Focus™ audio enrichment software, codecs, new hardware intellectual property (IP) and development tools that can be quickly integrated into a chip and brought to market quickly.

ARC-Based™ Mobile DTV Representation

This announcement is one of two new Sound-to-Silicon solutions ARC introduced today at the Computex Exhibition in Taiwan to wide acclaim by industry analysts. Please refer to www.arc.com for more information.

The emergence of a new type of converged product that includes mobile digital TV functionality is causing OEM and SoC companies to review their mobile DTV strategy. For example, a new breed of converged Portable Navigation Devices and Digital Picture Frames with built-in, digital free-to-air television services is driving up demand for mobile DTV. This is causing greater chip level integration to reduce costs, lower power consumption to extend battery life, and improvement of consumers’ multimedia experience to differentiate the end device from competitors.

ARC’s New Mobile Digital TV Solution
With ARC’s new Sound-to-Silicon Solution for Mobile Digital TVs, OEMs can offer consumers a significantly enhanced experience with multimedia content that resembles what the artist originally intended. Additionally, OEMs can leverage ARC’s mastering services to obtain a signature sound for each device that is unique from competitors. For the SoC supplier, the new AS 211 SFX Subsystem with optimized codecs and pre-integrated with Sonic Focus can enable a single chip with capability for both free-to-air and internet DTV.

• The latest version of Sonic Focus™ audio enrichment software that runs nearly 50 percent faster in embedded applications
• The new configurable AS 211 SFX Subsystem intellectual property (IP) that consumes 30 percent less power on less silicon real estate
• The ARC Video Subsystem that provides a complete pre-verified solution with standard definition codecs
• An extensive range of pre-integrated audio codecs managed by ARC
• A new Media Software Framework (MSF) that provides software developers an easy-to-use software API
• A complete set of hardware and software design tools to turn concept into final product
• A reference platform for complete Sound-to-Silicon hardware and software development

Ben Bajarin, senior analyst at Creative Strategies, said, “The approaching switchover to all-digital television broadcasting in the United States and other major countries will create an unprecedented opportunity for the Mobile DTV market. According to current market research, following the switchover traditional mobile digital TV broadcasters and cellular operators in many regions will launch DTV services that are forecast to attract over 500 million viewers by 2013. ARC is on the right track targeting this emerging market with a solution that makes companies more competitive while lowering their overall development costs.”

“The Mobile Digital TV market is poised for growth and ARC’s new Sound-to-Silicon solution gives OEMs and SoC companies rapid access to this evolving market opportunity,” said Michael Franzi, vice president of worldwide marketing at ARC International. “In addition, customers can bring to market a mobile digital TV solution that is differentiated from other offerings. For the OEM, ARC’s mastering services can create a custom sound unique from all others. For the SoC vendor, ARC’s low power solution can be differentiated at the hardware and software level, all with the shortest time to market.”

The ARC® Video Solution
The ARC Video Subsystem provides video playback capability for ARC’s Mobile DTV Solution. The wide range of video codecs available from ARC support video formats used in broadcast Mobile Digital TV or Internet TV (IPTV). The ARC Video Subsystem is programmable, enabling the OEM to include additional codecs, algorithms or enhancements to the product quickly.

The ARC® Loudness Advantage
All of ARC’s Sound-to-Silicon Solutions offer a unique loudness advantage that boosts perceived volume as much as 30 percent with no increase in amplifier power. Documented by renowned independent acoustics experts, ARC’s technology delivers a volume increase of 1.3- to 2.4-dB. This advantage can further lower an OEM’s BoM cost and reduce power consumption by enabling the volume to be reduced with no perceived reduction in loudness. Lowering power consumption in home applications is becoming increasingly important and can result in better Energy Star ratings. Click here to receive a copy of the white paper documenting the research on ARC’s loudness Advantage.

Availability
The new ARC Mobile DTV Solution is available for immediate licensing by OEMs and semiconductor companies globally. ARC-Based™ chips are available to OEMs from ARC silicon customers. For more information contact info@arc.com.

ARC, ARC-Based and Sonic Focus are trademarks or registered trademarks of ARC International with the U.S. Patent and Trademark Office and other international trademark organizations. All other brands or product names contained herein are the property of their respective owners. This press release may contain certain "forward-looking statements" that involve risks and uncertainties, including the development, implementation, and release of features described herein. These are at the sole discretion of ARC International. Licenses from 3rd parties for certain software and essential patents may be required depending on licensee's use/implementation. For other factors that could cause actual results to differ, visit the company’s Website as well as the listing particulars filed with the United Kingdom Listing Authority and the Registrar of Companies in England and Wales.